About a third of buy recommendations have positive stock price momentum, including Chevron (CVX), the largest lease holder in the Gulf of Mexico deep water Lower Tertiary trend. This was highlighted by the first test of flowing oil announced during the first week in September.
The other two thirds of buy recommendations have strong value appeal, including rapidly growing oil sands producer, Encana (ECA), and the refiner with the most uncommitted capacity to take that oil, Marathon (MRO). No joint venture announcement hinted by the two companies has materialized. Conditions seem ripe for a takeover deal, potentially involving a third party, to resolve an apparent impasse. The McDep Energy Portfolio has unlevered weightings of double in CVX, full in ECA and half in MRO.